Also a small cottage with loft could be made into studio to rent.

A written lease should contain a "both parties agree that any/all other or previous or outside agreements are void" clause, that you could then show to a judge if the tenant pulls out an audio recording of a rent to own agreement with the previous owner (gotta be a bit paranoid when it's a $500k asset on the line).

It is half of a small building which holds two apartments: one small studio downstairs and one larger loft studio upstairs (I live in the smaller studio).

rehabbed the trashed studio into a 1 bedroom, made repairs to broken exterior staircases, coin operated laundry room, and fixing up the garage for extra income.

If motel rooms are converted, these are studios. 

Real estate books are a dime a dozen...one book is hard to pick, but don't pass up the E-Myth Revisited...but get the audio book and play at 2x speed...the author sounds like he could die at any moment...still a good read ;) Good luck! 

I'd recommend recording the lease signing so that they're on camera/audio agreeing with the rules upfront

I listened to an interesting audio book in the Rich Dad series authored by a CPA.

I took on a big rehab for my first deal...tiny little 480sqft studio, how bad can it get?

Those will do for my 2 small studios.